the end result of the leveling system in this game is that you become more skilled than your enemies without becoming unrealistically powerful.  its not a bad idea and is certainly more realistic if not as fun as traditional leveling

hell no i wanna be so powerful that when i look at bad guys they drop dead lol 
no just kidding i realy dont mind either wat since im not much of a fan

No it's a terrible idea, because they scale everything in the dumbest way. There's literally no point in levelling up, I beat the campaign at level 2.  
 
Also when you DO level up, since everyone's possessions level up (for no good reason), you'll see even the poorest, shittiest roadside bandit with mad glass armor and high level weapons that just didn't exist in the universe till you got more powerful.  
 
 
The system lacked any thought to it. Every decision made there feels ass-backwards and was just thrown in to be the opposite of normal.

I maxed out my illusion and created a 100% Chameleon Spell and just sneak attacked the shit out of everyone. So to a point, I would disagree.

It sounds good in theory but it can be broken rather easily. Some people like the challenge wihilst others like the idea of being better then everyone else, hence why they bother leveling up. It's a hit or miss really. I on the other hand didn't have any problems with it though I can see the flaws in it.

Well, I thought the idea of encountering more powerful enemies was cool, instead of encountering a super power rat later, you get two minotaur after your ass.  Though I had to look at screen shots to remember there were goblins in the game.  I miss them now.  But I can't remember, do guards and towns folk get stronger too?  I think I  might want to go back and wipe out a whole town.  Genocide baby.

the leveling in the bethesda games really turn me off. i like in jrpgs leveling and just being all powerful destroying guys but how they do it leveling does close to nothing.

No the leveling in that game is awful. Thats why I changed it with mod.

The leveling system is pointless, I completed the main story line and a guild before I was level 10. 

I think they had a good idea with it. They just took it too far in my opinion.

It was a good idea in theory, though it was better executed in Morrowind, I find. 

It ruined Oblivion for me.  You don't become more skilled than your enemies, they're just always slightly worse than you are.  Levelling was completely pointless as far as I could tell.

I like it, so screw all y'all

" No it's a terrible idea, because they scale everything in the dumbest way. There's literally no point in levelling up, I beat the campaign at level 2.   Also when you DO level up, since everyone's possessions level up (for no good reason), you'll see even the poorest, shittiest roadside bandit with mad glass armor and high level weapons that just didn't exist in the universe till you got more powerful.    The system lacked any thought to it. Every decision made there feels ass-backwards and was just thrown in to be the opposite of normal. "

The Elder Scrolls school of leveling is conceptually interesting, but when you factor in the fact that everything in the world scales to your level (Unless you download a mod or something) as well as all the "cheesy" skills that you can level up quickly it is somewhat flawed in practice. But I still like Oblivion, and still like it more than Fallout 3 (and Morrowind, but pretty much everything is better than Morrowind.)

No, it's dumb dumb dumb.  I played for five hours without leveling up, once.  How do you let that happen in an RPG?

" It ruined Oblivion for me.  You don't become more skilled than your enemies, they're just always slightly worse than you are.  Levelling was completely pointless as far as I could tell. "

It definitely had problems, but you've got to make mistakes to learn, right?  Still, the game was amazing and the completely open feel of the game is so awesome.  As much as I love Bioware, it makes you feel so on rails playing those games.  Of course, there are things Bioware does better than Bethesda as well, and things Blizzard does better than either of them.  That's why they need to combine their forces to make a SUPER RPG.

100% chameleon is basically god mode, you can max some of the skills by putting something heavy on the corresponding button for an hour, the system is made in such way that if you benefits from choosing skills you plan to use much as your minor skills so you can control your leveling and the list goes on. I would say it's one of the most broken system in an RPG ever.

Wow I really didn't know that many people disliked it. It's about the choices, people. You can choose to beat the storyline with little to no leveling, or you can choose to min/max to your heart's content. Though for those who beat the game at level 5-10. you definitely missed out on many of the side quests, which are impossible without ranking up to 20-25 at least.
 
It's about the journey, not the destination; and you get out of it what you put in.